The latest data released by the High Industry and Industrial Research Institute (GGII) recently showed that in May 2018, China's new energy (6.120, -0.10, -1.61%) automobile production was approximately 86,000, an increase of 82% year-on-year; January-May total production 315,000 vehicles, a year-on-year increase of 90%. In May of this year, the total installed capacity of power battery in China was approximately 4.50GWh, an increase of 213% compared with the same period of last year. From January to May this year, the total installed capacity of power batteries was approximately 12.67GWh, an increase of 224% year-on-year.

With the rapid development of China's new energy automotive industry, as its related core components, the demand for power batteries has also increased substantially. However, overcapacity is also occurring in the power battery market, and the price is showing a declining trend. Experts said that competition has increased. , Power battery companies began to enter the rapid shuffle.

Deep cooperation with car companies

Since this year, many power battery companies have frequently reached cooperation with vehicle companies in order to lock in more market share.

On May 2, Nissan announced that it will launch 20 electric models to China in the future. Dongfeng Nissan’s first pure electric vehicle will use batteries from the Ningde era (43.800, 3.98, 9.99%). The relevant person in charge of Daimler Group also Said that the Ningde era will provide Daimler with electric vehicle batteries. Before that, the Ningde era has also become a partner of the Volkswagen Group and signed a strategic cooperation letter of intent with Jaguar Land Rover. At present, the Ningde era has been Beiqi New Energy, BMW, Geely. , Chang'an, Dongfeng and other car companies provided batteries and established a joint venture with SAIC Motor.

BYD (49.060, -0.97, -1.94%) plans to open up a shared battery technology platform and seek to cooperate with more car companies so as to seize market share. Shen Jun, deputy general manager of BYD Lithium Battery Division, said in an interview with the media that currently The company is currently divesting its power battery business. It is expected to be split by the end of this year or early next year, and it will be considered for independent listing in 2022 or 2023. BYD has already docked with major car OEMs such as Great Wall, BAIC and GAC, and it is expected to be fastest this year. There will be some batteries for external sales. Previously, BYD's power battery was for internal use only.

Korean power battery companies also launched a new round of deployment in China. South Korean battery company SKI is considering restarting its battery company BESK, which was jointly established with Beijing Electronics Holdings Co., Ltd., and Beijing Automotive Group, with a 350 million yuan investment. Previously due to reduced orders, BESK In early 2017 announced the suspension of production.

Power battery companies are simultaneously expanding their technology and production capacity. According to public information, BYD expects to have a capacity of 26GWh in 2018. In the Ningde era, lithium battery production will increase to 50GWh in 2020, and Tianjin Lishen will have an annual capacity of 20GWh in 2020. For Yiwei Lithium (18.040,-0.07,-0.39%), it will build a square lithium iron phosphate battery, a cylindrical ternary battery and a soft pack ternary battery production line by the end of 2017, and will increase the capacity of the square ternary battery by 2018. 2017 , Guoxuan Hi-tech (14.660, -1.54, -9.51%), a new generation of ternary 622 square aluminum shell battery industrialization and three yuan 811 battery, soft bag battery product research and development project progress.

Power battery has excess capacity

However, with the rapid expansion of production capacity, the domestic power battery industry also experienced excess capacity, and product prices showed a downward trend. According to the GGII data of the Institute of Advanced Industrial Production and Lithium Research, the price of power battery cells at the end of 2017 fell by 20 compared to the beginning of 2017. %~25%. However, the overall price of power battery raw materials has not shown a downward trend. This means that power battery companies will bear greater cost and profit pressure. Zhao Baoxing, deputy general manager of Lishen Power Battery System Co., Ltd. once said bluntly. The cost of raw materials continued to rise, and the price of the battery was continuously reduced due to the influence of the national policy. The cost pressure of the battery company was huge.

At the same time, due to the subsidy decline of new energy vehicles, auto makers have also shifted the pressure of operating costs to power battery companies. According to the incomplete statistics of the Beijing News reporter, in 2017, among 18 power battery companies, Lunshi Technology (6.700, -0.74, -9.95%), Stronger (11.410, -0.40, -3.39%), Fluorido (15.180, -0.45, -2.88%), Star source material (37.040, -0.04, -0.11%), Anderson Technology, Tianci Materials (40.120, -1.08, -2.62%), BYD, Guoxuan Hi-Tech, and Baikang (31.680, -0.66, -2.04%) have slowed performance growth in 9 companies, and their net profit has dropped significantly. A number of companies mentioned in the announcement that the decline in profits was affected by the adjustment of subsidies for new energy vehicles.

Increasingly fierce competition has intensified industry reshuffle, the industry concentration to further enhance the data show that in 2017 China's new energy vehicles (EV + PHEV) battery, the total installed capacity of about 36.24GWh. Among them, former top 10 total installed power the battery power companies a total of approximately 26.22Wh, 72.3% of the total, according to China chemical (7.250,0.04,0.55%) introduction and physical power industry Association Secretary-General Liu Yanlong, 2015-2017, battery related businesses from 150 The home fell to around 100. This means that one-third of the power battery companies have been eliminated.